Cholamandalam Investment and Finance Company on Monday announced plans to acquire a 72.12% stake in fintech payment solutions provider Payswiff Technologies Private Ltd for Rs 450 crore.
The company, an NBFC, is part of the Murugappa Group.
Cholamandalam Investment signed a shareholders’ pact and share purchase agreement on Jan. 17 with Payswiff, its founders and other existing shareholders, according to a regulatory filing.
“The total investment will allow the company to hold up to 72.12% of the share capital of Payswiff on a fully diluted basis and Payswiff will therefore become a subsidiary of the company,” he said.
The cash transaction may take place in one or more tranches at a price of Rs 1,622.66 per share.
Incorporated in 2013, Payswiff is dedicated to enabling online payment gateway services for e-commerce businesses and providing e-commerce solutions.
Payswiff is an omnichannel payment transaction solution that enables business owners to accept payments from their customers in-store, at home, online and on the go using mPOS and POS solutions, he said. declared.
“The proposed acquisition is in line with the company’s long-term strategy to explore and grow across the entire lending ecosystem model, particularly in the SME segment. digital and technology ecosystem in the SME segment, it is expected to add value to the existing Chola ecosystem,” he said.
This investment will provide a platform to create a new SME offering at scale, access to the SME network across the country and an opportunity to be one of the preferred financiers for SMEs, he said.
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